front 1 Capital Consumption Allowance | back 1 Another name for depreciation, the amount that businesses would have to save in order to take care of the deterioration of machines and other equipment |
front 2 Constant Dollars | back 2 Dollars expressed in terms of real purchasing power using a particular year as the base or standard of comparison, in contrast to current dollars |
front 3 Depreciation | back 3 Reduction in the value of capital goods over a one0year period due to physical wear and tear and also to obsolescence; Asao called capital consumption allowance |
front 4 Disposable Personal Income (DPI) | back 4 Personal In come after personal income taxes have been paid |
front 5 Durable Consumer goods | back 5 Consumer goods that have a life span of more than three years |
front 6 Expenditure Approach | back 6 Computing GDP by adding up the dollar value at current market prices of all final goods and services |
front 7 Final Goods and Services | back 7 Goods and Services that are at their final stage of production and will not be transformed into yet other goods or services |
front 8 Fixed Investment | back 8 Purchases by businesses of newly produce producer durable, or capital goods, such as production machinery and office equipment. |
front 9 Foreign Exchange Rate | back 9 The price of one currency in terms of another |
front 10 Gross Domestic Income (GDI) | back 10 The sum of all income- wages, interest rent and profits0 paid to the four factors of production |
front 11 Gross Domestic Product (GDP) | back 11 The Total market of all final goods and services produced during a year by factors of production located within a nations borders |
front 12 Gross Private Domestic Investment | back 12 The creation of capital goods, such as factories and machines, that can yield production and hence consumption in the future. Also include this definition are changes in business inventories and repairs made to machines or buildings. |
front 13 Income apoproach | back 13 Measuring GDP by adding up all components oaf national income, including wages, interest, rent and profits |
front 14 Indirect business taxes | back 14 All business taxes except the tax on corporate profits,. Indirect business taxes include sales and business property taxes |
front 15 Intermediate goods | back 15 Goods used up entirely in the production of final goods |
front 16 Inventory Investment | back 16 Changes in the stocks of finished goods and goods in process, as well as changes in the raw materials that businesses Kopp on hand. Whenever inventories are decreasing, inventory investment is negative. Whenever they are increasing inventory investment is positive. |
front 17 Investment | back 17 Any use of today's resources to expand tomorrows production or consumption |
front 18 National Income (NI) | back 18 The Total of all factor payments to resource owners. It can be obtained from net domestic product (NDP)by subtraction indirect business taxes and transfers and adding net U.S. income earned abroad and other business income adjustment. |
front 19 National Income Accounting | back 19 A measurement system used to estimate national income and its components. One approach to measuring an economy aggregate performance. |
front 20 Net Domestic Product (NDP) | back 20 GDP minus depreciation |
front 21 Net investment | back 21 Gross Private domestic investment minus an estimate of the wear and tear on the existing capital stock. Measure the change in capital stock over one-year period. |
front 22 Nominal values | back 22 Values of variables such as GDP and investment expressed in current dollars, also called money values, measurement in terms of actual market prices at which goods and services are sold |
front 23 Nondurable consumer goods | back 23 Goods used by consumers that are used up within three years |
front 24 Nonincome Expense items | back 24 The total of intercept business taxes and depreciation |
front 25 Personal Income (PI) | back 25 The amount of income that households actually receive before they pay personal income taxes |
front 26 Producer durable, or capital goods | back 26 Durable goods having expected service life of more than three years that are used by businesses to produce other goods and services |
front 27 Purchasing Power Parity | back 27 adjustments in exchange rate conversions that take intone account differences in there truest cost of living across countries |
front 28 Real Values | back 28 Measurement of economic values after adjustments have been made for changes in the average of prices between years |
front 29 Services | back 29 Mental or physical labor or assistance purchased by consumers. |
front 30 Total Income | back 30 The yearly amount earned by the nations resources (factors or production). Total income therefore includes wages, rent, interest payments, and profits that are received by workers landowners, capital owners, and entrepreneurs, respectively. |
front 31 Value added | back 31 The dollar value of industry's sales minus the value of intermediate goods ( for example, raw materials and parts) used in production |